City of Lakeland FY2009 Budget

Lakeland Electric66%

General Fund14%

Water and Wastewater

8%

Capital Improvement Funds

6%

Solid Waste2%

Lakeland Center, Parking, Golf

Course, Airport, Stormwater

4%

Total = $604 million

ElectricWaterWastewaterSolid WasteAirportParkingCleveland Heights Golf Course

Certain operations are financed 100% from user fees assessed directly against users of those services:

Lakeland's utility rates are slightly less than the average rates charged by other cities in the State of Florida (including electric rates!!)

Lakeland's Stormwater rates are about 40% of the average rate charged by other Cities in the State

The Stormwater Utility Fund is financed in part from a user fee that averages $4.50 per month per residence

$1.1 million of those annual costs (about one-third of the budget) are paid directly from the General Fund - i.e. the $4.50 per month user fee would need to be increased by 33% in order to generate enough revenue to recover all costs of this entity directly from users

The General Fund pays for:

Utilities- $1 million

The Lakeland Center is able to cover most of it's operating expenses from ticket and rental revenues - about $6 million

Building and Facilities - mortgage and improvements - $1.5 million

Very few (if any) venues such as the Lakeland Center across the country are able to "pay their own way"

Police 35,000,000 Fire 14,500,000 Community Development 7,000,000 Public Works 6,000,000 Parks and Recreation 19,500,000 Street Lighting 4,000,000

Expenses of this operations are predominantly payroll in nature (see attached)

These expenses are financed by a combination of different revenues (see attached)

The General Fund is used to pay operating cost for those functions of government that do not lend themselves to recovering those costs based on some sort of user fee

General Fund Spending by Category

Community Development

8%

Public Works

7%

Street Lighting5%

Parks and Recreation

23%

Fire17%

Police40%

General Fund Spending by Type

Tax Increment2%

Lakeland Center3%

Insurance3%All Other

2%

Technology5%

Utilities & Street Lighting

8%

Fleet 5%

Payroll72%

General Fund Revenue SourcesLRMC Lease

4%

All Other5%

Charges for Services

7%

Utility Dividends36%

Sales & Utility Taxes27%

Property Taxes21%

Approximately $10-$11 million per year

Historically:Facilities maintenance 2,000,000 Debt Service 2,500,000 Capital Improvements such as new parks, fire stations, etc 2,500,000 Subsidy to the General Fund 3,500,000

Capital Improvements related to General Fund operations are financed from the proceeds of leasing the City-owned hospital to LRMC

Property TaxesFY 2007 millage rate was 3.5450

FY 2008 millage rate was 3.2296

Legislated millage rate for 2009 - 3.0246

Amendment 1 reduced taxable values by 7.4%

Rollback rate is 3.4031Provides same tax revenue as preceding year plus additional tax revenue on any new construction

Rollback rate adds $1.9 million in additional revenue

2008 General Fund Budget 91,100,000$

Program Cuts / Personnel Reductions (2,650,000)

2009 Budget Starting Point 88,450,000$

2009 Revenue ReductionsSales and Utility Taxes (1,250,000) Charges for Services (1,200,000) Property Taxes (1,500,000)

(3,950,000) 2009 Revenue Increases

Dividends from Water/Wastewater 400,000

2009 Cost IncreasesUtilities 400,000 Fuel 650,000 Fire Union Increases - 7% 400,000 Police Union Increases - 5% 700,000 Other Employees - 1.5 to 4% 180,000 Pension Plans - 1% 150,000

2,480,000

2009 Expense ReductionsInsurance (130,000) Other (300,000)

(430,000)

2009 Budget Shortfall 5,600,000

PolicePayroll 26,500,000 Fleet 2,600,000 Utilities 400,000 Technology 2,000,000 Administration 3,200,000 Facilities 500,000

2009 Budget As Proposed

FirePayroll 12,350,000 Fleet 300,000 Utilities 200,000 Technology 200,000 Administration 1,300,000 Facilities 250,000

2009 Budget As Proposed

2009 Budget As Proposed

Community DevelopmentBuilding Inspection 2,100,000 Code Enforcement 800,000 Planning 2,000,000 Tax Increments 2,000,000 Administration 700,000 Community Support Grants 350,000

2009 Budget As Proposed

Parks and RecreationParks Facilities 8,400,000 Recreation Facilities and Programming 5,000,000 Libraries 3,600,000 Cemeteries 800,000 Administration 1,800,000

2009 Budget As Proposed

Public WorksEngineering 1,500,000 Roadway Maintenance 2,500,000 Stormwater cross- subsidy 1,100,000 Traffic 1,000,000 Administration 600,000 Street Lights 4,100,000

Options to consider

• Curtail Services• Permanently Close some Parks or Recreation Facilities

• Permanently Close a Fire Station

• Raise Stormwater Fees – eliminate cross subsidy from tax revenues

• Raise Property Tax Millage Rate

• Eliminate all or most new capital improvements financed from LRMC revenues

Options to consider

• Increase utility rates above market and use the additional revenues as an additional dividend revenue to the General Fund

• Eliminate Reserve Funds – approximately $8 million (equivalent to 30 days of operating costs)

• Curtail non essential subsidies such as Community Services Grants

Actions taken by the City of Lakeland

Increased Property Tax Rate – rollback rate1,900,000

Eliminated cross subsidy of Stormwater Costs1,100,000

required a stormwater fee increase

Eliminated Community Support Service Grants 350,000

Eliminated Capital Improvements – LRMC lease 1,950,000

Withdrawal from Reserves 350,000